Number of qualified house buyers is shrinking…

[Raybyrnes]

HLS,
What is the differences between FHA and California Housing fiinance Authority? Do you see one being more adventagous that the other?

[jpinpb]

[quote=Ren]But at least there are some qualifications to meet. They actually verify income with FHA, I assume. It’s bad, but it’s been much worse.[/quote]

Yes. I think FHA does require you to prove you can make payments. Maybe HLS can verify. Perhaps appraisals are not being done, but do you have to show income.

Thank you for the info on the dollar amount for FHA. This raises another question for me, then. I have noticed that homes priced under 500k move quickly and prices above that take a little longer. If FHA is not the reason for the dollar amount, then we are looking at incomes. Seems most people will only qualify for 500k and under. Those seem to be the easiest, quickest selling (even multiple offers). The exceptions continue on the higher priced homes.

[jpinpb]

[quote=Ren]But at least there are some qualifications to meet. They actually verify income with FHA, I assume. It’s bad, but it’s been much worse.[/quote]

Yes. I think FHA does require you to prove you can make payments. Maybe HLS can verify. Perhaps appraisals are not being done, but do you have to show income.

Thank you for the info on the dollar amount for FHA. This raises another question for me, then. I have noticed that homes priced under 500k move quickly and prices above that take a little longer. If FHA is not the reason for the dollar amount, then we are looking at incomes. Seems most people will only qualify for 500k and under. Those seem to be the easiest, quickest selling (even multiple offers). The exceptions continue on the higher priced homes.

[jpinpb]

[quote=Ren]But at least there are some qualifications to meet. They actually verify income with FHA, I assume. It’s bad, but it’s been much worse.[/quote]

Yes. I think FHA does require you to prove you can make payments. Maybe HLS can verify. Perhaps appraisals are not being done, but do you have to show income.

Thank you for the info on the dollar amount for FHA. This raises another question for me, then. I have noticed that homes priced under 500k move quickly and prices above that take a little longer. If FHA is not the reason for the dollar amount, then we are looking at incomes. Seems most people will only qualify for 500k and under. Those seem to be the easiest, quickest selling (even multiple offers). The exceptions continue on the higher priced homes.

[jpinpb]

[quote=Ren]But at least there are some qualifications to meet. They actually verify income with FHA, I assume. It’s bad, but it’s been much worse.[/quote]

Yes. I think FHA does require you to prove you can make payments. Maybe HLS can verify. Perhaps appraisals are not being done, but do you have to show income.

Thank you for the info on the dollar amount for FHA. This raises another question for me, then. I have noticed that homes priced under 500k move quickly and prices above that take a little longer. If FHA is not the reason for the dollar amount, then we are looking at incomes. Seems most people will only qualify for 500k and under. Those seem to be the easiest, quickest selling (even multiple offers). The exceptions continue on the higher priced homes.

[jpinpb]

[quote=Ren]But at least there are some qualifications to meet. They actually verify income with FHA, I assume. It’s bad, but it’s been much worse.[/quote]

Yes. I think FHA does require you to prove you can make payments. Maybe HLS can verify. Perhaps appraisals are not being done, but do you have to show income.

Thank you for the info on the dollar amount for FHA. This raises another question for me, then. I have noticed that homes priced under 500k move quickly and prices above that take a little longer. If FHA is not the reason for the dollar amount, then we are looking at incomes. Seems most people will only qualify for 500k and under. Those seem to be the easiest, quickest selling (even multiple offers). The exceptions continue on the higher priced homes.

[HLS]

RAY,
FHA is a minor PITA. CHFA is a major PITA.
Program sounds good to some, but a real hassle to deal with and most lenders dont want to deal with the govt red tape.

JP…
Cheaper homes are selling because in general people with less money are more foolish than people with more money.
Obviously it is easier to qualify for lower amount loans than higher amount loans.

There are ONLY multiple offers on homes that appear to be underpriced (this week)
There are not multiple offers on most listings.

The verbal blather about days on market is simply idiotic. If a house is priced right it will get offers within days, sometimes hours or minutes.
If the price is stupid(as most are) it won’t get an offer for weeks, months or maybe years while some sellers chase the market down, spending thousands a month in carry costs, because they refuse to “lose money”

I have never seen so many intelligent people being dragged into making foolish decisions based on emotion. It’s nothing more than a tri-fecta of the greater fool theory, a Ponzi scheme and government intervention all intersecting. Time will tell who is right.

The reality is that the housing market has collapsed only to be offset by the govt intervention to create the illusion that the market is stable through various financing schemes combined with consumer’s desire to feel entitled to something that they cannot afford which will utlimately balance out the collapse someday in the future.

Until then it’s a game of musical chairs of people buying and selling, most with no understanding of what they are really doing.

It’s exactly like the stock market. People involved with substantial amounts of money that are really clueless about what they are doing, but following the herd and doing it anyway.

With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS

[HLS]

RAY,
FHA is a minor PITA. CHFA is a major PITA.
Program sounds good to some, but a real hassle to deal with and most lenders dont want to deal with the govt red tape.

JP…
Cheaper homes are selling because in general people with less money are more foolish than people with more money.
Obviously it is easier to qualify for lower amount loans than higher amount loans.

There are ONLY multiple offers on homes that appear to be underpriced (this week)
There are not multiple offers on most listings.

The verbal blather about days on market is simply idiotic. If a house is priced right it will get offers within days, sometimes hours or minutes.
If the price is stupid(as most are) it won’t get an offer for weeks, months or maybe years while some sellers chase the market down, spending thousands a month in carry costs, because they refuse to “lose money”

I have never seen so many intelligent people being dragged into making foolish decisions based on emotion. It’s nothing more than a tri-fecta of the greater fool theory, a Ponzi scheme and government intervention all intersecting. Time will tell who is right.

The reality is that the housing market has collapsed only to be offset by the govt intervention to create the illusion that the market is stable through various financing schemes combined with consumer’s desire to feel entitled to something that they cannot afford which will utlimately balance out the collapse someday in the future.

Until then it’s a game of musical chairs of people buying and selling, most with no understanding of what they are really doing.

It’s exactly like the stock market. People involved with substantial amounts of money that are really clueless about what they are doing, but following the herd and doing it anyway.

With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS

[HLS]

RAY,
FHA is a minor PITA. CHFA is a major PITA.
Program sounds good to some, but a real hassle to deal with and most lenders dont want to deal with the govt red tape.

JP…
Cheaper homes are selling because in general people with less money are more foolish than people with more money.
Obviously it is easier to qualify for lower amount loans than higher amount loans.

There are ONLY multiple offers on homes that appear to be underpriced (this week)
There are not multiple offers on most listings.

The verbal blather about days on market is simply idiotic. If a house is priced right it will get offers within days, sometimes hours or minutes.
If the price is stupid(as most are) it won’t get an offer for weeks, months or maybe years while some sellers chase the market down, spending thousands a month in carry costs, because they refuse to “lose money”

I have never seen so many intelligent people being dragged into making foolish decisions based on emotion. It’s nothing more than a tri-fecta of the greater fool theory, a Ponzi scheme and government intervention all intersecting. Time will tell who is right.

The reality is that the housing market has collapsed only to be offset by the govt intervention to create the illusion that the market is stable through various financing schemes combined with consumer’s desire to feel entitled to something that they cannot afford which will utlimately balance out the collapse someday in the future.

Until then it’s a game of musical chairs of people buying and selling, most with no understanding of what they are really doing.

It’s exactly like the stock market. People involved with substantial amounts of money that are really clueless about what they are doing, but following the herd and doing it anyway.

With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS

[HLS]

RAY,
FHA is a minor PITA. CHFA is a major PITA.
Program sounds good to some, but a real hassle to deal with and most lenders dont want to deal with the govt red tape.

JP…
Cheaper homes are selling because in general people with less money are more foolish than people with more money.
Obviously it is easier to qualify for lower amount loans than higher amount loans.

There are ONLY multiple offers on homes that appear to be underpriced (this week)
There are not multiple offers on most listings.

The verbal blather about days on market is simply idiotic. If a house is priced right it will get offers within days, sometimes hours or minutes.
If the price is stupid(as most are) it won’t get an offer for weeks, months or maybe years while some sellers chase the market down, spending thousands a month in carry costs, because they refuse to “lose money”

I have never seen so many intelligent people being dragged into making foolish decisions based on emotion. It’s nothing more than a tri-fecta of the greater fool theory, a Ponzi scheme and government intervention all intersecting. Time will tell who is right.

The reality is that the housing market has collapsed only to be offset by the govt intervention to create the illusion that the market is stable through various financing schemes combined with consumer’s desire to feel entitled to something that they cannot afford which will utlimately balance out the collapse someday in the future.

Until then it’s a game of musical chairs of people buying and selling, most with no understanding of what they are really doing.

It’s exactly like the stock market. People involved with substantial amounts of money that are really clueless about what they are doing, but following the herd and doing it anyway.

With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS

[HLS]

RAY,
FHA is a minor PITA. CHFA is a major PITA.
Program sounds good to some, but a real hassle to deal with and most lenders dont want to deal with the govt red tape.

JP…
Cheaper homes are selling because in general people with less money are more foolish than people with more money.
Obviously it is easier to qualify for lower amount loans than higher amount loans.

There are ONLY multiple offers on homes that appear to be underpriced (this week)
There are not multiple offers on most listings.

The verbal blather about days on market is simply idiotic. If a house is priced right it will get offers within days, sometimes hours or minutes.
If the price is stupid(as most are) it won’t get an offer for weeks, months or maybe years while some sellers chase the market down, spending thousands a month in carry costs, because they refuse to “lose money”

I have never seen so many intelligent people being dragged into making foolish decisions based on emotion. It’s nothing more than a tri-fecta of the greater fool theory, a Ponzi scheme and government intervention all intersecting. Time will tell who is right.

The reality is that the housing market has collapsed only to be offset by the govt intervention to create the illusion that the market is stable through various financing schemes combined with consumer’s desire to feel entitled to something that they cannot afford which will utlimately balance out the collapse someday in the future.

Until then it’s a game of musical chairs of people buying and selling, most with no understanding of what they are really doing.

It’s exactly like the stock market. People involved with substantial amounts of money that are really clueless about what they are doing, but following the herd and doing it anyway.

With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS

[patientrenter]

“With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS”

So it’s effectively a way to take bad loans off banks’ books at their full book value, without any write-off. This makes it yet another bailout. It’s hard to keep track of all the hoses pumping taxpayer dollars into housing and housing finance. It’s like an ICU patient with 40 needles and tubes stuck inside of them.

[patientrenter]

“With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS”

So it’s effectively a way to take bad loans off banks’ books at their full book value, without any write-off. This makes it yet another bailout. It’s hard to keep track of all the hoses pumping taxpayer dollars into housing and housing finance. It’s like an ICU patient with 40 needles and tubes stuck inside of them.

[patientrenter]

“With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS”

So it’s effectively a way to take bad loans off banks’ books at their full book value, without any write-off. This makes it yet another bailout. It’s hard to keep track of all the hoses pumping taxpayer dollars into housing and housing finance. It’s like an ICU patient with 40 needles and tubes stuck inside of them.

[patientrenter]

“With FHA income IS verified and the no appraisals are on refi’s only on certain loans. This is solely being done so nobody has to admit the loss, just pretend like all is well. (Mark to market would recognize the collapse immediately) HLS”

So it’s effectively a way to take bad loans off banks’ books at their full book value, without any write-off. This makes it yet another bailout. It’s hard to keep track of all the hoses pumping taxpayer dollars into housing and housing finance. It’s like an ICU patient with 40 needles and tubes stuck inside of them.

[Author]

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